State of Play
- Google has revised its advertising policy to exclude sweepstakes casinos from social casino gaming ads, signaling tighter restrictions on these controversial gambling platforms.
- This change affects how sweepstakes casinos can market themselves on the largest online advertising platform, impacting both operators and players across the US.
Google has updated its advertising policy for social gaming by explicitly prohibiting sweepstakes casinos from advertising under the social casino games category.
Sweepstakes casinos employ dual currency systems, enabling players to wager with sweepstakes coins that can be “redeemed” rather than cashed out, thereby blurring the lines between legal gaming and real-money online casino gambling.
The new policy clarifies that sweepstakes casinos do not qualify for the certification required to advertise on Google, as they offer games with real-world rewards rather than simulated gambling without value. Google requires social casinos to hold licenses and display disclaimers indicating that no real-money prizes are offered, a requirement that sweepstakes sites no longer meet.
Sweepstakes casinos under fire
This action by Google could have significant implications. Sweepstakes casinos, already under legal scrutiny for circumventing state gambling laws, now face increased barriers to advertising on Google’s highly trafficked platforms.
The move by Google comes as states continue to enforce bans on sweepstakes casinos. The most recent is California’s passing and Gov. Gavin Newsom’s signing of a ban on sweepstakes casino sites in the state. The move is leaving the industry and players to wonder what’s next after the California ban.
This could reduce their market reach and visibility, potentially dampening player engagement. Conversely, legitimate social casinos benefit from clearer advertising rules that distinguish them from potentially illegal operations. Players can expect safer and more transparent advertising messaging, as regulators and operators adapt to evolving online gambling standards.
What comes next for online gaming?
The stricter classification of sweepstakes casinos may prompt further regulatory enforcement and legal action in various states. Could they follow the lead of California, New Jersey, and New York? States may use this crackdown by Google to spur their own ban on sweepstakes casinos, thereby removing the gray area the industry currently faces. Operators might seek alternative marketing channels or re-evaluate their business models.
The other fascinating aspect of this is what it could mean for the legalization of online casinos. In addition to a ban on sweepstakes casinos, legalizing real-money casinos is another, less discussed, option. Players across the US have demonstrated a desire for casino gaming on their devices, and they are willing to visit sweepstakes casino sites to access it. Give these players what they want while also placing it in a regulated market where the state benefits from the tax revenue it generates, and players have the necessary protection.
Based on reporting by Devin O’Connor for Casino.org.